Answer ALL questions in this paper. [100 MARKS] QUESTION 1 (20 MARKS) REQUIRED Use the information provided below to prepare the Statement of Comprehensive Income for the year ended 28 February 2023. INFORMATION FIESTA TRADERS PRE-ADJUSTMENT TRIAL BALANCE AS AT 28 FEBRUARY 2023 Debit (R) Credit (R) Balance Sheet accounts section Capital 2 520 000 Drawings 160 000 Land and buildings 1 800 000 Vehicles at cost 1 360 000 Equipment at cost 1 000 000 Accumulated depreciation on vehicles 760 000 Accumulated depreciation on equipment 320 000 Fixed deposit: Rio Bank (10% p.a.) 300 000 Trading inventory 230 000 Debtors control 260 000 Provision for bad debts 16 000 Bank 134 000 Cash float 12 000 Creditors control 220 000 Mortgage loan: Rio Bank (12% p.a.) 640 000 Nominal accounts section Sales 3 000 000 Cost of sales 960 000 Sales returns 20 000 Salaries and wages 838 000 Bad debts 24 000 Stationery 40 000 Rates and taxes 116 000 Motor expenses 180 000 Repairs to building 34 000 Telephone 76 000 Electricity and water 92 000 Bank charges 16 000 Insurance 40 000 Interest on mortgage loan 66 000 Interest on fixed deposit 12 000 Rent income 270 000 7 758 000 7 758 000 Adjustments and additional information 1. Stocktaking on 28 February 2023 revealed the following inventories: 1.1 Trading inventory R220 000 1.2 Stationery R4 000 2. The telephone account for February 2023, R6 000, was due to be paid on 01 March 2023. 3. A debtor who was declared insolvent paid R900 which represented 30% of her debt. The balance of her account must now be written off. 4. The provision for bad debts must be decreased to R14 000. 5. Rent has been received up to 31 March 2023. Note: The rental was increased by R2 000 per month with effect from 01 November 2022. 6. The insurance total includes an annual premium of R15 000 that was paid for the period 01 June 2022 to 31 May 2023. 7. Provide for outstanding interest on the mortgage loan for February 2023. 8. Provide for the outstanding interest on fixed deposit. The investment in fixed deposit was made on 01 September 2022. 9. A payment for the annual service of a motor vehicle was not recorded, R5 000. 10. Provide for depreciation as follows: 10.1 On equipment at 10% p.a. on cost. 10.2 On vehicles at 20% p.a. using the diminishing balance method. Note: A vehicle with a cost price of R360 000 was purchased on 01 December 2022. The purchase has been recorded

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Question 1

Answer ALL questions in this paper.	[100 MARKS]
QUESTION 1		(20 Marks)

FIESTA TRADERS
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 28 FEBRUARY 2023
	Workings (If any)	R
Sales
Cost of sales
Gross profit
Other operating income
Gross operating income
Operating expenses
Salaries and wages
Bad debts
Stationery
Rates and taxes
Motor expenses
Repairs to building
Telephone
Electricity and water
Bank charges
Insurance
Operating profit
Interest income
Interest expense
Net profit for the year

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